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            | Topic: | Business | 
        
            | Number of pages / Number of words: | 5 / 1181 | 
                
    
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This is necessary if a theory is to be tested against the facts. If the task is to discover a relationship between âincomeâ and âconsumptionâ, these terms must be defined in a clearly understood manner
The next step is to formulate a hypothesis. This is an untested statement which attempts to explain how one thing is related to another For example, an economist asked to say why prices vary over time might offer the hypothesis that changes in prices are caused by changes in the quantity of money...
        
        
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This is an untested statement which attempts to explain how one thing is related to another For example, an economist asked to say why prices vary over time might offer the hypothesis that changes in prices are caused by changes in the quantity of money. Hypotheses will be based on observation and upon certain assumptions about the way the world behaves...
        
        
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                                    ECONOMICS AS A SOCIAL SCIENCE
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